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What type of deposit is this?

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firemystdl

Junior Member
What is the name of your state? Virginia

Hey everyone,

What type of deposit is it when Party A wishes to take and inspect some items for a possible sale from Party B. In return Party B requests a sum of money, to be returned when Party A completes their inspection of the items?

To me, just using the word "deposit" indicates a "down payment", for which it is not. I thought "security deposit", but I could only find that being used between landlords and tenants.

Can anyone help?

Thanks.
 


I AM ALWAYS LIABLE

Senior Member
firemystdl said:
What is the name of your state? Virginia

Hey everyone,

What type of deposit is it when Party A wishes to take and inspect some items for a possible sale from Party B. In return Party B requests a sum of money, to be returned when Party A completes their inspection of the items?

To me, just using the word "deposit" indicates a "down payment", for which it is not. I thought "security deposit", but I could only find that being used between landlords and tenants.

Can anyone help?

Thanks.

My response:

It's called a "bailment."

IAAL
 

firemystdl

Junior Member
I don't think it's "bailment"

I AM ALWAYS LIABLE said:
My response:

It's called a "bailment."

IAAL

Bailment: the act of delivering goods or personal property to another in trust.

Where as DEPOSIT - Usually defined to be a naked bailment of goods to be kept for the bailor, without reward, and to be returned when he shall require it. A contract, by which one of the contracting parties gives a thing to another to keep, who is to do so gratuitously, and obliges himself to return it when he shall be requested.

Since bailment doesn't require or mention of any kind of return, I don't think it fits the situation.

So I'm back to square one wondering what kind of deposit the scenario would be.
 

I AM ALWAYS LIABLE

Senior Member
firemystdl said:
Bailment: the act of delivering goods or personal property to another in trust.

Where as DEPOSIT - Usually defined to be a naked bailment of goods to be kept for the bailor, without reward, and to be returned when he shall require it. A contract, by which one of the contracting parties gives a thing to another to keep, who is to do so gratuitously, and obliges himself to return it when he shall be requested.

Since bailment doesn't require or mention of any kind of return, I don't think it fits the situation.

So I'm back to square one wondering what kind of deposit the scenario would be.

My response:

I don't care what you "think". It's a bailment. It's a collateralized bailment, but a bailment nonetheless.

IAAL
 

firemystdl

Junior Member
So I would ask for the "Bailment" back?

I AM ALWAYS LIABLE said:
My response:

I don't care what you "think". It's a bailment. It's a collateralized bailment, but a bailment nonetheless.

IAAL

So if someone gave me $1 in exchange to take and inspect some goods, I would ask for the goods back in exchange for their $1 bailment?
 

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